The Australian Healthcare System
Our healthcare system has long been a point of pride, so it’s no wonder that it has consistently ranked among the best in the world. Mixing public and private healthcare options means we have plenty of choice, and we are overwhelmed by exceptional quality of care from medical professionals, with equitable access to various for most Australians.
But how does it truly compare to other global healthcare heavyweights? And what could we learn from the likes of Taiwan, South Korea and Canada to improve our system?
Key Takeaways
- Australia ranks among the best healthcare systems on the planet, with top marks for quality of care, government readiness, preventive health initiatives and more.
- Despite its strengths, Australia struggles with healthcare access in rural areas, rising premiums and lengthy wait times in public hospitals.
- Learning from global leaders like Taiwan and Sweden could push our government to innovate and improve healthcare delivery – both in the public and private sectors.
Australia’s dual-system approach
People around the world talk about Australia’s fantastic healthcare system, due in large part to our universal public healthcare (i.e. Medicare) and choice of private cover for more specialised services. Medicare is the cornerstone of our public health system, as it provides free or subsidised treatments for citizens and permanent residents.
At the same time, private health insurance complements the public system by allowing everyday Australians to get covered for other services, as well as have access to private hospital care and enjoy shorter wait times in their preferred hospitals.
Most recently, Australia was ranked as having the third-best healthcare system in the world by the CEOWORLD magazine Health Care Index. We earned high marks for government readiness, modern medical infrastructure and equitable access. From the report, some of our healthcare system’s main strengths included:
- Universal cover: Medicare makes sure that every citizen has access to essential healthcare services.
- High-quality care: Our hospitals are well-equipped, and our healthcare professionals have to undergo rigorous training before they can start managing patients.
- Preventive measures: Our government’s emphasis on public health campaigns and screenings has helped to reduce long-term health burdens.
However, that doesn’t mean our healthcare system isn’t without its challenges. On the contrary, long waiting times for elective surgeries in public hospitals, disparities in rural healthcare access and annual price hikes to private health insurance premiums mean there’s still plenty of room to grow.
So, how does Australia compare to other countries?
Taiwan’s innovative approach
Currently ranked as the world’s top healthcare system, Taiwan’s single-payer National Health Insurance (NHI) system sets the gold standard for efficiency and cost-effectiveness. Funded by taxes and premiums, the system covers nearly 100% of the population, including foreign residents.
Strengths:
- Affordable healthcare services and medicines.
- Very few administrative overheads.
- Widespread adoption of digital health records.
Australia can definitely learn from Taiwan’s seamless integration of technology, which minimises any administrative burdens and improves patient outcomes. However, Taiwan will have to deal with funding issues as its ageing population grows – a concern that Australia will also need to address in the near future.

South Korea’s pioneering medical technologies
South Korea boasts the second-best healthcare system on the planet, excelling in advanced medical technology and preventive care. The country’s universal healthcare is funded by contributions from individuals, employers and the government, which means that almost everyone in the country is completely covered.
Strengths:
- Cutting-edge treatments, particularly in cancer care and robotic surgeries.
- Regular health screenings are encouraged by the government.
- Low medical costs relative to the high quality of care.
While Australia’s healthcare system is comparable in quality, South Korea’s does much better in terms of its rapid adoption of innovative treatments. This could act as a model for us to improve our medical research and technological integration.

Canada’s focus on prioritising primary care
Canada ranks just below Australia on the list, with a publicly funded Medicare system that delivers universal access to essential healthcare services. Each province manages its own healthcare system, which does create a few variations in the level of cover and different services.
Strengths:
- Focus on primary care and prevention to reduce long-term healthcare costs.
- Healthcare access is based on need rather than an individual’s ability to pay.
While Australia beats Canada in terms of the efficiency of our healthcare system and shorter wait times for elective procedures within its private healthcare sector. Canada’s community-oriented primary care approach is an area where we could improve, particularly for rural and under-served regions.

Sweden’s decentralised superiority
Sweden’s decentralised healthcare system ranks fifth globally. It’s a unique take on healthcare, with universal access provided through regional county councils. Lauded for its excellent health outcomes, Sweden is all about patient-centric care and technological advancements.
Strengths:
- High life expectancy and low infant mortality rates.
- Integration of telemedicine and electronic health records have improved accessibility.
While Australia’s centralised Medicare system creates uniformity, Sweden’s regional flexibility could teach us a lesson about how tailoring services to meet local needs could be the smartest solution.


Portability
Don’t re-serve waiting periods when you switch to a new health fund or policy
“John was immediately covered for a hip replacement in private hospital because he had already served his waiting periods for joint replacements on his old policy”
Challenges for the Australian healthcare system to overcome
While it’s true that our healthcare system is grounded in quality, equity and innovation, there are a number of issues we still need to address. Getting access to medical services in remote parts of the country remains a persistent issue. The latest telemedicine solutions, as seen in Sweden, could help bridge this gap.
There’s also the immediate issue of rising costs. Private health insurance premiums and out-of-pocket expenses are growing concerns for Australian seniors and low-income families. And although we are better than many other countries, waiting times for elective surgeries and specialist consultations in public hospitals are still far beyond what they should be.
Australia’s strengths in the global context
Our healthcare system consistently ranks among the best globally thanks mostly to its balanced approach and government oversight. Top strengths include:
- Government readiness: Scoring higher than many countries, Australia’s proactive policies mean that healthcare is able to remain accessible and responsive.
- Preventive healthcare: Campaigns and screenings reduce the burden of chronic diseases, which in turn benefits both everyday Australians and the system itself.
- Choice and flexibility: Having a dual public–private model means Australians can customise their healthcare to match their needs and budgets.
What can Australia learn from other countries?
How Taiwan and Sweden use electronic health records and telemedicine should inspire Australia to further integrate technology for better patient outcomes. Moreover, South Korea’s swift adoption of cutting-edge medical treatments shows just how important it is to invest in research and development.
We can also learn from Canada’s commitment to primary care to – hopefully – start addressing the very real healthcare-access disparities in rural parts of the country. Finally, it’s worth looking at the Netherlands’ regulated insurance model, which creates affordability for all without compromising on the quality of care. Could this be a potential framework for Australia to better manage private insurance premiums?
To sum up...
Australia’s healthcare system is undoubtedly among the best globally, but as the medical needs of our population continue to grow, we need to start tackling challenges like rising premiums and long wait times.
Reach out to the experts at Fair Health Care Alliance to compare health insurance policies and find one that meets your needs and your budget.